PHOENIX-Following completion and lease-up of Tramonto Marketplace, local developer Denro Development has sold the 41,386-sf inline portion of a 116,726-sf shopping center to a Washington buyer for $15.9 million. The fully leased center is anchored by an Albertsons grocery.
CB Richard Ellis senior associate Rich Abraham tells GlobeSt.com that the center at 3134 W. Carefree Highway at the corner of Carefree Highway and Interstate 17 sold almost immediately to WFT Tramonto SPE and Karob Tramonto SPE, better known as the Walker Family Trust. "We had a buyer who ultimately came in off the street and made an offer that was pretty close to list price. There really was no call for offers on this one," Abraham says.
According to Abraham, Denro Development put the center on the market because the timing was right. "It's a good time in the market with low cap rates and money chasing real estate," Abraham says, adding that deal closed with a 6.3% cap rate. The center was built in two phases--2003 and 2005--so there are no upgrades planned.
The broker says 14% of the leases will roll next year, 16% in 2008 and 2009 and then 26% in 2010. The roster is filled with regional and national tenants, including Fantastic Sam's, Subway, the UPS Store, Carefree Tan, Carefree Yamaha and Desert Flowers and Gifts. The grocery anchor, which includes an in-store Osco's pharmacy, fills about 55,000 sf.
CBRE's Phoenix team included first vice presidents Bob Young, Glenn Smigiel and Steve Brabant. The buyer was self-represented.
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